CFO SINK RESTRICTS PUBLIC ADJUSTERS FROM
COLLECTING FEES ON RESIDENTIAL PROPERTY DECLARED A TOTAL LOSS

Florida Chief Financial Officer Alex Sink has issued an
emergency rule prohibiting public insurance adjusters from collecting fees
on contracts with policyholders whose homes were destroyed earlier this
month by tornadoes if there is no dispute with the insurance company that
the home is a total loss. The emergency rule, issued last Friday to cover
policyholders in Lake, Seminole, Sumter and Volusia counties affected by the
Feb. 2 tornadoes, also gives homeowners 14 days to rescind a public adjuster
contract without penalty.

“Public adjusters provide a service when consumers feel
they cannot negotiate with their insurance company on their own,” CFO Sink
said. “We simply want to make sure that no one takes advantage of the
financial and emotional turmoil these victims are facing.”

Bob Besserman, president of the Florida Association of
Public Insurance Adjusters, said a public adjuster inspects the loss site,
analyzes the damages, assembles claim support data, reviews the insured's
coverage, and exclusively serves the client, not the insurance company. He
said the association encourages consumers to check with DFS to ensure they
are working with a licensed public adjuster.

“When a property is decreed a total loss by the insurance
company, that does not mean that is all you are entitled to,” Besserman
said. “Be aware that there are extensions of coverage such as personal
property, debris removal and code upgrades, to name just a few, and perhaps
additional endorsements over and above the written limit of coverage.”

Because of the Governor’s declaration of emergency, the
maximum fee that public adjusters can charge tornado victims in the affected
area is capped at 10 percent of the claim payment, regardless of when they
enter into a public adjuster contract for a claim related to tornado damage.
Furthermore, public adjusters are prohibited from demanding or accepting any
type of advance fees, retainers, or other compensation prior to any payment
being made on the claim.